“More to share later this year.” Xbox and Microsoft pledge to double down on Windows improvements for gamers, as Valve’s Steam OS turns up the heat.

One intriguing and rapidly developing device segment is the portable PC gaming sector. Companies such as Valve, Lenovo, ASUS, GPD, and numerous others are contributing to its widespread adoption, drawing inspiration from Nintendo’s groundbreaking work with devices like the Switch and other early gaming handhelds. By 2025, we can expect a wide array of choices, and by the end of this year, that selection will expand further.

At CES 2025, Valve unveiled that the Steam OS, initially designed for the Steam Deck, will become completely device-independent. The Lenovo Legion Go S will be the initial third-party device adopting this Steam Deck version, marking a first for their lineup of PC gaming handhelds without Windows. This move has undoubtedly caused Microsoft some concern, as the user-friendly nature of Steam OS has highlighted the challenges of using Windows on devices such as these. Achieving maximum compatibility often means taking on significant technical burdens, and it appears that Xbox’s VP of Next Gen, Jason Ronald, concurs with this assessment.

At a panel that included Valve and Lenovo, Ronald expressed optimism about the potential benefits Microsoft could offer in this arena. He explained that Microsoft aims to transfer the gaming-oriented functionality of its Xbox operating system over to Windows.

By combining the top-tier features of Xbox and Windows, we’ve been working diligently over the past 20 years on an exceptional operating system. However, it has primarily been confined to the console. Our goal now is to make these experiences accessible not just for console users, but also for a wider range of players and developers within the Windows ecosystem. We’ll be revealing more details about this later in the year.

It’s clear that devices like the ASUS ROG Ally and Lenovo Legion Go face significant challenges compared to the Valve Steam Deck or Nintendo Switch. Windows, in its current form, isn’t optimized for these handheld gaming systems, requiring a good grasp of PC gaming fundamentals to fully utilize them. On the other hand, the Steam Deck is user-friendly, with intuitive controls and customization options that cater well to joystick navigation and trackpad usage. Moreover, unlike traditional consoles such as Xbox or PlayStation, the Steam Deck allows for tinkering, enabling users to install non-Steam games. Before I switched to the Lenovo Legion Go, I was able to add non-Steam games on my Steam Deck.

Microsoft has been progressively enhancing the gaming experience on portable devices designed for Windows-based PC games, such as a compact mode for the Xbox Game Bar. In essence, this means that Microsoft aims to make Windows more flexible and suitable for various device types, utilizing the Xbox’s interface as a foundation.

In essence, our ambition is to optimize Windows for gaming across all devices. Interestingly, the Xbox operating system is actually based on Windows, which means it leverages much of the underlying infrastructure we’ve developed for consoles. This allows us to transfer these advancements from console to PC, enhancing the overall gaming experience on various devices. For instance, there are certain features in Windows that were primarily designed for use with a keyboard and mouse, such as thumbstick support or joypads, but without them, they may not function optimally.

Steam OS is finally bringing Windows some serious competition in the consumer space

For a long time, Windows has been the undisputed leader in the desktop PC operating system market, being the preferred choice for most consumer-oriented uses. I believe this prolonged dominance has led to some degree of stagnation since there’s been little significant competition driving Windows to improve user experience.

2015 marked the year when Microsoft CEO Satya Nadella expressed his vision to transition users from merely using Windows to genuinely loving it. Fast-forward ten years, and it seems that dream is as distant as ever, judging by the chorus of enthusiasm on social media and tech forums for an authentic alternative to Windows. Over the years, many have grown weary due to a perceived “enshittification” of the platform, marked by intrusive ads, bloatware, questionable privacy practices, and a lackluster approach to innovation.

However, it’s essential to acknowledge that Microsoft isn’t entirely at fault here. Unlike other operating systems such as Android, iOS, or Steam OS, Windows doesn’t have the luxury of a default digital marketplace generating consistent revenue for the company. Microsoft has even admitted that Google makes more money from Windows than they do themselves, thanks to the open-natured history of the platform.

The license sale model is the backbone of Windows’ business strategy – a structure that can pose challenges when it comes to making devices more affordable at the point of purchase, as Original Equipment Manufacturers (OEMs) often pass on the licensing fee to consumers.

In my opinion, prioritizing a consumer-centric strategy would likely be the key to gaining customer loyalty, given that Microsoft seems to be shifting its focus away from Windows more than ever in my experience. Imagining an Xbox operating system for gaming handhelds, complete with an Xbox Store as the main attraction, sounds ideal. However, overcoming the numerous challenges on this path, both internally and externally within Microsoft, is no small feat. Coordinating changes across different departments within Microsoft to enhance Windows for gamers might even be more challenging than actually creating the technology itself.

By the close of each day, it’s evident why both gamers and developers lean towards Steam. It’s crucial for Microsoft to heed their voices, as the ascension of Steam OS might leave them little option. Undoubtedly, Microsoft retains the potential to transform “Windows users into ardent Windows lovers,” if they choose to do so.

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2025-01-08 12:11